Crypto : 5 billion USDT issued by Tether after Fed's 0.25 point cut

The crypto tokenized dollar machine has been reignited. Following the 25 basis points cut decided by the Fed on September 17, Tether accelerated the issuance of USDT. In total, 5 billion minted in eight days, including an additional 1 billion on September 19 on Ethereum, according to Onchain Lens. The timing is no coincidence: when the cost of money falls, the thirst for liquidity in crypto markets rises instantly.

A strong signal for crypto markets after the Fed

The first monetary easing of 2025 clarified the situation: the Fed now prioritizes risk management against a weakening labor market. Translation on the digital assets side: more margins, more risk appetite, therefore more dry powder in stablecoins to feed order books. This aligns with analyses from Coinbase. Desks always prepare for it ahead of everyone else.

In this context, Tether’s pace becomes a crypto indicator in itself. The 5 billion minted in eight days, with another billion on Ethereum on September 19, points to an investor repositioning ahead of the next macro appointment. It’s fast. And it’s intentional.

Important nuance however: part of these amounts may fall under the famous “authorized but not issued” (tokens minted on the treasury side to serve as stock, not yet injected into circulation). This mechanism, detailed several times by Paolo Ardoino, prevents interpreting each mint as an immediate net inflow into the crypto market.

Where do tokenized dollars go? Rebalancing between Ethereum and Tron

The latest wave slightly reshuffled the cards between chains. According to aggregated data from DeFiLlama, quoted by specialized press, Ethereum now hosts around 81 billion USDT (≈ 45% of the supply), ahead of Tron at 78.6 billion (≈ 43.7%). This shift is not trivial: when DeFi activity on ETH heats up, demand for USDT issued on Ethereum (ERC-20) mechanically rises.

Why this back and forth? Tron keeps the advantage of minimal transaction costs, decisive for retail (general public) and transfers between exchanges. Ethereum, meanwhile, concentrates composability and the depth of institutional DeFi. As soon as on-chain yields widen or perpetual contracts move flows via bridges, the needle shifts back to ETH. It’s cyclical, and above all pragmatic.

Above this microgeography, the macro: the stablecoin market weighs around 290 to 293 billion dollars, and USDT remains the “elephant in the room” with ~172 billion, or nearly 59% market share. This dominance structures spreads, access to liquidity, and the speed of risk transmission in the crypto ecosystem.

Market consequences: liquidity, spreads, and discipline

Practically, a rapid expansion of USDT first results in better depth on CEX order books and a compression of spreads on pairs quoted in Tether. The basis on futures contracts can tighten upwards, especially if the cash-and-carry arbitrage reactivates after the Fed’s decision. Flows are then visible in deposit metrics of exchanges and on cross-chain bridges.

Practical strategy: monitor the trajectory of large mints from Tether’s wallets to major platforms. If tokens remain on the treasury side (“authorized but not issued”), the effect on prices is more diffuse. If they quickly migrate to addresses associated with exchanges, the impact on spot liquidity and perpetual contracts is generally more direct. Do not confuse operational stock and immediate buying pressure.

On the adoption side, Tether claims strong traction: more than 3.5 million new wallets holding at least 1 USDT over 90 days, nearly triple the cumulative growth of competitors, according to Paolo Ardoino. This confirms USDT’s role as a gateway and liquidity refuge in turbulent phases. But buckle up: the concentration of the stablecoin market also creates systemic dependency. Diversifying holdings in stablecoins, segmenting by use (payments vs yield vs collateral), and monitoring peg deviations remain healthy reflexes.